II 

114TH CONGRESS 

1ST SESSION S. 1061 

To improve the Federal Pell Grant program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 22, 2015 

Ms. HIRONO (for herself, Mr. MARKEY, and Mr. SCHUMER) introduced the following bill; which was read twice and referred to the Committee on 

Health, Education, Labor, and Pensions 

A BILL 

To improve the Federal Pell Grant program, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Pell Grant Cost of 

5 Tuition Adjustment Act’’. 

6 SEC. 2. PURPOSE. 

7 The purpose of this Act is to restore the role of Fed8 eral Pell Grants as the foundational Federal investment 

9 in higher education, in order to strengthen the economy 

10 of the United States by improving opportunities for lowVerDate Sep 11 2014 07:05 May 05, 2015 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1061.IS S1061

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1 income students to complete higher education and join the 

2 middle class. 

3 SEC. 3. FINDINGS. 

4 Congress finds the following: 

5 (1) Federal Pell Grants provided under section 

6 401 of the Higher Education Act of 1965 (20 

7 U.S.C. 1070a) (referred to in this Act as ‘‘Federal 

8 Pell Grants’’) have historically been the fundamental 

9 Federal investment in helping low-income students 

10 pay for college and enter the middle class. 

11 (2) In the 1979–1980 academic year, the max12 imum Federal Pell Grant paid for 77 percent of the 

13 average cost of attendance at an in-State, 4-year in14 stitution of higher education. However, in the 2014– 

15 2015 academic year, the maximum Federal Pell 

16 Grant covered less than one-third of that average 

17 cost of attendance or $18,943. For the 2014–2015 

18 academic year, the average cost of only tuition and 

19 fees at an in-State, 4-year institution of higher edu20 cation is $9,139. 

21 (3) The SAFRA Act (Public Law 111–152) 

22 provided a slight inflation adjustment to the max23 imum Federal Pell Grant. However, this increase is 

24 lower than the Consumer Price Index and will end 

25 after the 2017–2018 academic year. 


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1 (4) The program providing Federal Pell Grants 

2 already acts as a quasi-entitlement, in which both 

3 mandatory funding and discretionary funding com4 bine to maintain a maximum Federal Pell Grant 

5 amount. 

6 (5) The Congressional Budget Office reports on 

7 any overall financial surplus or shortfall in the fund8 ing provided for the Federal Pell Grant program. 

9 However, in recent years, in order to meet the max10 imum Federal Pell Grant level with the provided 

11 level of funding, Congress has made cuts to the pro12 gram through imposing additional eligibility require13 ments for Federal Pell Grants and limiting the avail14 ability of year-round Federal Pell Grants, causing 

15 significant uncertainty and reducing access to higher 

16 education for millions of hardworking college stu17 dents. 

18 (6) Removing the Federal Pell Grant program 

19 from the uncertainty of the congressional discre20 tionary appropriations process will improve student 

21 access to, and the affordability of, higher education. 

22 SEC. 4. INCREASING THE FEDERAL PELL GRANT AND ADD23 ING A COST OF LIVING ADJUSTMENT. 

24 (a) IN GENERAL.—Section 401(b)(2)(A) of the High25 er Education Act of 1965 (20 U.S.C. 1070a(b)(2)(A)) is 


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1 amended by striking clauses (i) and (ii) and inserting the 

2 following: 

3 ‘‘(i)(I) for award year 2014–2015, 

4 $9,139; and 

5 ‘‘(II) for award year 2015–2016 and 

6 each subsequent award year, the amount 

7 of the maximum Federal Pell Grant deter8 mined under this clause for the imme9 diately preceding award year, increased by 

10 a percentage equal to the estimated per11 centage increase, if any, in the Consumer 

12 Price Index (as determined by the Sec13 retary, using the definition in section 

14 478(f)) for the most recent calendar year 

15 ending prior to the beginning of that 

16 award year; plus 

17 ‘‘(ii) any additional amount specified 

18 for the maximum Federal Pell Grant in 

19 the last enacted appropriation Act applica20 ble to that award year, less’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 subsection (a) shall apply with respect to Federal Pell 

23 Grants awarded under section 401 of the Higher EduVerDate Sep 11 2014 07:05 May 05, 2015 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1061.IS S1061

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1 cation Act of 1965 (20 U.S.C. 1070a) for award year 

2 2015–2016 and each succeeding award year. 

Æ 


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